Gather information about the existence of physical inventory

Gather information about the existence of physical inventory

As a staff auditor you are asked to gather information about the existence of physical inventory. For each of the three types of audit evidence obtained, discuss whether the audit evidence is appropriate and sufficient.

  • Physical examination of inventory in warehouse.
  • Documented discussion with inventory control manager that the inventory agrees to the accounting records and is in saleable condition.
  • Observation of annual physical inventory count and re-performance of a sample inventory counts.

Post 2 reasons why – at least one paragraph per reason- and explain with Real World /or Real Company examples.